We have put together a short glossary of important terms and buzzwords used in the partnership community that will help to demystify some of the language – particularly if you are new to the Partner Marketing world.
Channel/ Resellers– Technology companies sell through the channel, in addition to their sales team or in lieu of having a sales team. Resellers can be a one-stop shop for buying technology products & solutions, but many go beyond the mere selling and offer additional value in terms of services and bespoke support for their customers (they are called Value-added-resellers or VARS).
Concierge – Companies use a concierge agency to help service their partners. This is more of a “white-glove” service where the concierge agency will call on behalf of the partner and offer pre-approved marketing programs.
CSP – Cloud Services Providers offer cloud-based services such as cloud hosting, infrastructure, software applications, security, etc. Cloud companies will have other companies’ products embedded in their offering.
ELG – Ecosystem-led growth – Ecosystem-led growth (ELG) is a business strategy that emphasises the role of partners to drive innovation, customer value and growth.
ISV – Independent Software Vendor, a company that develops and sells software applications that run on one or more computer hardware or operating system platforms. Technology companies partner with ISVs in different ways: ISV software will be integrated within the partner’s platform (e.g. an ISV application that integrates with a cloud platform and enhances the offering) or the technology partner is looking to get their solution embedded in the ISV’s software. They will then jointly market the integrated solution.
GSIs – Global System Integrators. These are the traditional consulting services companies such as Accenture, Deloitte, Capgemini etc. They collaborate with technology vendors to deliver integrated solutions to clients.
Hyperscaler – A hyperscaler refers to the industry-leading companies that provide massive global cloud infrastructure such as AWS, Microsoft Azure, Google Cloud Platform and IBM Cloud.
Market to partners – addressing and targeting partners (e.g. for partner recruitment)
Market through/ with partners – Partners resell your products or services & working with partners on joint programs
MDF – Marketing Development Funds Technology companies provide partners with MDFs that they can invest in marketing programs. MDF is typically provided on a quarterly basis and it can be used against co-branded digital campaigns, events, content creation or merchandise. There are certain requirements for the reimbursement (usually up to 50% of the campaigns) such as joint logo placement, agreed KPI delivery, POE (Proof of execution) material) etc.
MSP – Managed Service Providers are companies that handle IT infrastructure and end-user system management for their clients – from networks, security to data management etc. MSPs are a crucial type of partner, working with MSPs can extend a company’s reach to customers who need to outsource their IT management, but still want to implement their solutions.
Partner Lifetime Value (PLTV) – measures the overall value a partner brings to a company throughout the partnership and emphasises the long-term benefits. Calculated as Total Revenue – Partnership costs (Length of partnership x cost per year)
Partner Portals – These are self-service online portals where a partner can access marketing resources and tools to use for their co-marketing programs. They can also provide turnkey digital marketing programs to spend their MDF on. The portals typically serve the smaller partners, hence the inclusion of ‘campaign-in-the-box’ programs that allow a fast and easy GTM for these partners.
Partner Relationship Management (PRM) – The strategies, processes, and technology used to manage and optimise the relationships with partners. PRM platforms facilitate communication with partners, partner enablement, lead distribution and management, performance tracking and deal registrations as well as incentive programs.
Strategic Alliances – These are two or more companies coming together to take a joint solution to market. Strategic alliances often include other technology companies, and the alliance helps both partners to enhance their offerings, extend the market reach and increase sales.
Turnkey Partner Program – A pre-approved co- marketing program that delivers specific & guaranteed outcomes, is quick to market and doesn’t require much partner input. These programs are usually designed and executed by an external agency who works with partners for execution.
Value Proposition – A joint value proposition is a statement that outlines the unique values and benefits both partners bring to their customers with their combined effort. It should also identify what sets a partnership apart from main competitors. This will be the foundation for any content strategy & development.